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News Release: 02-03
GRAY DAVIS, Governor
Date: 02/26/02
DEMETRIOS A. BOUTRIS, Commissioner
Household and Beneficial Inform State of Completed Audit and Refunded Consumers
Department of Corporations to Test Audit Results and Maintain Close Oversight
Sacramento, February 26, 2002 — The Davis Administration was informed today by Household Finance Corporation and Beneficial California, Inc. that Andersen has performed an independent audit of the companies' consumer loans and that all appropriate refunds have been made to overcharged customers, as required by the Department of Corporations in the settlement of a lawsuit filed last November.
"Household and Beneficial have represented to us that every California borrower overcharged by the consumer lenders since 1998 has been made whole," said California Corporations Commissioner Demetrios A. Boutris. "The Department will be testing Andersen's audit and stands ready to demand additional refunds if necessary."
In the settlement agreement signed January 4, 2002, Household/Beneficial agreed to perform an independent audit and refund consumers overcharged as a result of violations of California's lending laws and regulations. Although the companies failed to meet the settlement's February 15 deadline, Household/Beneficial reported that the last of approximately $3 million in refund checks was disbursed to customers by February 25. Household/Beneficial have agreed to comply with annual independent audits through 2004.
The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov.
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